Canada Delays Plan to Force Automakers to Hit EV Sales Targets Amid Tariff Concerns
The Canadian government has delayed a plan to force automakers to hit minimum sales levels for electric vehicles, citing the need to review the policy in light of U.S. President Donald Trump's tariffs.
According to sources, Prime Minister Mark Carney announced the delay on Friday as part of a series of measures aimed at helping sectors affected by the tariffs. The EV mandate will be paused for 60 days while the government conducts a thorough review of the policy and its impact on the auto industry.
"We have an auto sector which, because of the massive change in U.S. policy, is under extreme pressure," Carney said at a news conference in Mississauga, Ont. "They've got enough on their plate right now. So we're taking that off."
The review will also examine the entire mandate and next steps for implementing the EV sales targets. The government has waived the mandate for 2026 models.
Brian Kingston, president of the Canadian Vehicle Manufacturers' Association, welcomed the decision as an "important first step." He stated, "The EV mandate imposes unsustainable costs on auto manufacturers, putting at risk Canadian jobs and investment in this critical sector of the economy."
Industry experts argue that the tariffs imposed by Trump have significantly impacted Canada's auto sector. The government's review is seen as a response to these concerns.
Background information shows that the EV mandate was part of Canada's climate measures aimed at reducing greenhouse gas emissions from transportation. However, critics argued that the policy would lead to increased costs for automakers and potentially harm Canadian jobs.
The delay in implementing the EV sales targets has sparked debate among environmental groups and industry stakeholders. Some argue that the review is an opportunity to reassess the policy and find a balance between climate goals and economic concerns.
As the government conducts its 60-day review, the auto sector will continue to face challenges related to the tariffs imposed by Trump. The outcome of the review will determine whether the EV mandate will be reinstated or revised in some way.
The Canadian government has not announced a specific timeline for completing the review or implementing any changes to the EV sales targets.
*Reporting by Tech.*